Melbourne

Melbourne lies within the top 10% of areas nationally in terms of population growth performance according to AreaSearch analysis of short and medium-term trends

Based on analysis of ABS population updates for the Melbourne statistical area (Lv2), and new addresses validated by AreaSearch, the population is estimated at around 73,768 as of Nov 2025. This reflects an increase of 18,827 people (34.3%) since the 2021 Census, which reported a population of 54,941 people in the Melbourne (SA2). The change is inferred from the resident population of 72,694 estimated by AreaSearch following examination of the latest ERP data release by the ABS in June 2024 and an additional 505 validated new addresses since the Census date. This level of population equates to a density ratio of 11,193 persons per square kilometer, placing it in the top 10% of national locations assessed by AreaSearch. Melbourne's 34.3% growth since the 2021 census exceeded the national average (9.7%), along with the state, marking it as a growth leader in the region. Population growth for the area was primarily driven by overseas migration that contributed approximately 96.0% of overall population gains during recent periods, although all drivers including natural growth and interstate migration were positive factors.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, as released in 2024 with 2022 as the base year. For any SA2 areas not covered by this data, AreaSearch is utilising the VIC State Government's Regional/LGA projections released in 2023 with adjustments made employing a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group from these aggregations are also applied across all areas for years 2032 to 2041. As we examine future population trends, a significant population increase in the top quartile of national statistical areas is forecast, with the area expected to expand by 29,520 persons to 2041 based on aggregated SA2-level projections, reflecting an increase of 38.9% in total over the 17 years.

The level of residential development activity in Melbourne was found to be higher than 90% of real estate markets across the country

Melbourne has received around 181 dwelling approvals annually over the past five financial years, totalling approximately 905 homes. In FY26 so far, 42 approvals have been recorded. Each year, an average of 10.2 new residents arrive per dwelling constructed between FY21 and FY25. This indicates a significant demand outpacing supply, which may put upward pressure on prices and increase competition among buyers.

The average construction cost value for new dwellings is $448,000, slightly above the regional average. In FY26, Melbourne has registered approximately $1.43 billion in commercial approvals, suggesting robust local business investment. New building activity shows a trend towards denser development, with 99% attached dwellings and 1% detached dwellings.

This trend provides accessible entry options for downsizers, investors, and entry-level buyers. Melbourne reflects a transitioning market with around 243 people per approval. By 2041, Melbourne is expected to grow by approximately 28,662 residents. If current development rates continue, housing supply may not keep pace with population growth, potentially increasing competition among buyers and supporting stronger price growth.

Melbourne has very high levels of nearby infrastructure activity, ranking in the top 10% nationally

Changes in local infrastructure significantly impact an area's performance. AreaSearch identified 263 potential influence projects. Notable ones are Greenline Project - Yarra River, Level Crossing Removal Project, Queen Victoria Market Precinct Renewal, and Metro Tunnel Project. The following details those most relevant.

Professional plan users can use the search below to filter and access additional projects.

Denotes AI-based impression for illustrative purposes only, not to be taken as definitive under any circumstances. Please follow links and conduct other investigations from the project's source for actual imagery. Developers and project owners wishing us to use original imagery please Contact Us and we will do so.

The employment environment in Melbourne shows above-average strength when compared nationally

Melbourne has a highly educated workforce with professional services well represented. The unemployment rate was 3.7% in the past year, with estimated employment growth of 5.8%.

As of September 2025, 53,236 residents were employed while the unemployment rate was 1.0% lower than Greater Melbourne's rate of 4.7%. Workforce participation was 68.3%, slightly higher than Greater Melbourne's 64.1%. Key industries included accommodation & food (employment share 2.9 times regional level), professional & technical services, and health care & social assistance. Construction was under-represented with only 3.6% of the workforce compared to Greater Melbourne's 9.7%.

There were 4.9 workers per resident, indicating a significant employment hub attracting workers from surrounding areas. Between September 2024 and September 2025, employment increased by 5.8%, labour force grew by 5.7%, leading to a slight decrease in unemployment of 0.1 percentage points. In contrast, Greater Melbourne saw employment growth of 3.0% with a rise in unemployment of 0.3 percentage points. State-level data from 25-Nov-25 showed Victoria's employment grew by 1.13% year-on-year, adding 41,950 jobs, with an unemployment rate of 4.7%. National employment forecasts from May-25 suggest Melbourne's employment should increase by 7.0% over five years and 14.0% over ten years, based on industry-specific projections applied to Melbourne's employment mix.

Income figures position the area below 75% of locations analysed nationally by AreaSearch

According to AreaSearch's aggregation of latest postcode level ATO data released on June 30, 2023, Melbourne suburb had a median taxpayer income of $42,612 and an average income of $67,203. Nationally, these figures are approximately average, compared to Greater Melbourne's median of $57,688 and average of $75,164. Based on Wage Price Index growth of 8.25% since June 30, 2023, current estimates for September 2025 would be approximately $46,127 (median) and $72,747 (average). According to the 2021 Census, personal income ranks at the 61st percentile ($864 weekly), while household income is at the 32nd percentile. Distribution data shows that 31.5% of locals (23,236 people) fall into the $1,500 - 2,999 income category, similar to regional levels where this cohort represents 32.8%. Housing affordability pressures are severe, with only 76.8% of income remaining, ranking at the 22nd percentile. The suburb's SEIFA income ranking places it in the 8th decile.

Melbourne features a more urban dwelling mix with significant apartment living, with a predominantly rental market

Melbourne's dwelling structures, as per the latest Census, consisted of 0.1% houses and 99.9% other dwellings including semi-detached homes, apartments, and 'other' dwellings. Home ownership in Melbourne stood at 13.1%, with 13.6% of dwellings mortgaged and 73.3% rented. The median monthly mortgage repayment was $1,800, while the median weekly rent was $381. Nationally, Melbourne's mortgage repayments were lower than the Australian average of $1,863, but rents exceeded the national figure of $375.

Melbourne features high concentrations of group households and lone person households, with a median household size of 1.7 people

Family households account for 37.5% of all households, including 5.7% that are couples with children, 25.6% that are couples without children, and 3.1% that are single parent families. Non-family households make up the remaining 62.5%, with lone person households at 47.2% and group households comprising 15.3%. The median household size is 1.7 people.

Melbourne shows strong educational performance, ranking in the upper quartile nationally when assessed across multiple qualification and achievement indicators

Educational attainment in Melbourne is significant, with 61.1% of residents aged 15 and above holding university qualifications. This compares to national figures of 30.4% for Australia and 33.4% for Victoria. The most common qualification type is bachelor degrees at 37.7%. Postgraduate qualifications follow at 20.6%, with graduate diplomas accounting for 2.8%.

Vocational pathways make up 18.3% of qualifications, with advanced diplomas at 11.0% and certificates at 7.3%. Educational participation is high, with 42.2% of residents currently enrolled in formal education. This includes 25.4% in tertiary education, 1.7% in primary education, and 1.5% pursuing secondary education.

Transport servicing is high compared to other areas nationally based on assessment of service frequency, route connectivity and accessibility

Melbourne has 201 active public transport stops operating currently. These include train, light rail, and bus services. There are 92 individual routes serving these stops, collectively providing 69,302 weekly passenger trips.

The average distance residents are from the nearest transport stop is 95 meters, indicating excellent accessibility. Service frequency averages 9,900 trips per day across all routes, which equates to approximately 344 weekly trips per individual stop.

Melbourne's residents boast exceedingly positive health performance metrics with very low prevalence of common health conditions across all age groups

Melbourne's health outcomes data shows excellent results with very low prevalence of common health conditions across all age groups.

The private health cover rate is approximately 53% of the total population (~39,392 people), slightly higher than the average SA2 area. Mental health issues and asthma are the most prevalent medical conditions, affecting 6.9 and 5.4% of residents respectively. A significant majority, 83.6%, report no medical ailments compared to 0% across Greater Melbourne. The area has 6.1% of residents aged 65 and over (4,499 people). Health outcomes among seniors are particularly strong, broadly in line with the general population's health profile.

Melbourne is among the most culturally diverse areas in the country based on AreaSearch assessment of a range of language and cultural background related metrics

Melbourne's population consists of 60.2% speaking a language other than English at home, with 70.6% born overseas. Christianity is the predominant religion at 25.6%. Buddhism is notably higher in Melbourne at 10.2% compared to none across Greater Melbourne.

The top three ancestry groups are Chinese (27.1%), Other (18.5%), and English (13.3%). Korean, Spanish, and Indian ethnicities show notable overrepresentation: Korean at 2.1%, Spanish at 0.8%, and Indian at 5.9%.

Melbourne hosts a very young demographic, ranking in the bottom 10% of areas nationwide

Melbourne's median age in 2021 was 28, which is lower than Greater Melbourne's figure of 37 and also younger than Australia's median age of 38. The age profile reveals that individuals aged 25-34 were particularly prominent, making up 39.7% of the population, while those aged 5-14 constituted a smaller proportion at 1.6%. This concentration of 25-34 year-olds is significantly higher than the national average of 14.5%. Post-2021 Census data indicates a rejuvenation trend, with Melbourne's median age decreasing from 29 to 28 years. Key changes include an increase in the 15-24 age group from 24.5% to 27.6%, and a growth in the 25-34 cohort from 38.3% to 39.7%. Conversely, the 35-44 age group declined from 14.8% to 13.6%. Population forecasts for Melbourne in 2041 suggest substantial demographic changes, with the strongest projected growth in the 25-34 cohort at 37%, adding 10,778 residents to reach a total of 40,064.